How to Configure Penalty Rates
Penalty rates provide increased pay for work performed during less desirable times — such as weekends, nights, public holidays, or specific shift windows.
Where To Find It
- Open Awards from the main navigation.
- Select or create an award, then open the Rules step (Step 4).
- Select the relevant Employment Type.
- Expand the Penalties accordion.
Penalty Types Available
Penalties come in two formats — rate multipliers (percentage of ordinary rate) and dollar amounts (fixed hourly value). Each format is available across several trigger types.
Daily Penalties
Apply to entire days of the week.
- Daily Rate Multiplier — a percentage-based penalty for selected days
- Applicable Days — tick the days this penalty applies to
- Penalty Rate — enter the rate as a percentage (must be greater than 100%)
- Daily Dollar Value — a fixed hourly dollar penalty for selected days
- Applicable Days — tick the days
- Hourly Penalty Dollar Value — enter the dollar amount per hour
Shift-Based Penalties
Apply when shifts fall within a defined time range.
- Shift Rate Multiplier — percentage-based penalty for shifts in a time window. Applicable days are checked against each calendar day the shift spans; only the hours that fall on an applicable day receive the penalty.
- Applicable Days — tick the days
- Penalty Rate — enter the percentage
- Shift Ranges — define one or more time windows:
- Start Shift Range and End Shift Range for each window
- Shift Start Day Shift Rate Multiplier — percentage-based penalty that is determined by the day the shift starts. If the shift starts on an applicable day, the penalty applies to all hours in that shift — including hours that roll into the next calendar day. If the shift does not start on an applicable day, no part of the shift receives the penalty.
- Applicable Days — tick the days
- Penalty Rate — enter the percentage
- Shift Ranges — define optional start and end time windows:
- Start Shift Range — the shift must start within this window
- End Shift Range — the shift must end within this window
- Shift Start Day Checkin Time Rate Multiplier — percentage-based penalty that uses the shift start day to determine applicable days, with additional filtering based on actual check-in and check-out times. If the shift starts on an applicable day and the employee's first check-in and/or final check-out falls within the configured time ranges, the penalty applies to all hours in that shift.
- Applicable Days — tick the days
- Penalty Rate — enter the percentage
- Check-in Range — optionally restrict based on actual clock-in/clock-out times:
- Start Check-in Range — the employee's first check-in must fall within this time window
- Finish Check-out Range — the employee's final check-out must fall within this time window
- Leave either range blank to skip that check (e.g., set only the start check-in range if you only care when the employee clocked in)
- Shift Dollar Value — fixed dollar penalty for shifts in a time window
- Same configuration with Hourly Penalty Dollar Value instead of percentage
Shift Rate Multiplier vs. Shift Start Day variants: The key difference is how applicable days are evaluated. The standard Shift Rate Multiplier checks each day block independently — so if a night shift crosses midnight, only the hours on an applicable calendar day get the penalty. The Shift Start Day variants check the shift's start day once: if the start day is applicable, every hour in the entire shift is penalised; if not, none are. The Checkin Time variant adds a further filter: the penalty only triggers when the employee's actual check-in and/or check-out time falls within the configured ranges — useful for penalties that should only apply to specific shift patterns like permanent night shifts.
Time Range Penalties
Apply to hours worked within a specific time-of-day range.
- Time Range Rate Multiplier — percentage-based penalty for a time window
- Applicable Days — tick the days
- Penalty Rate — enter the percentage
- Applicable Time Range — set Start Time and End Time
- Shift Ranges (optional) — restrict this penalty to shifts that start and/or end within specific windows:
- Start Shift Range — only apply the penalty when the shift starts within this time window
- End Shift Range — only apply the penalty when the shift ends within this time window
- Leave both blank to apply the penalty to all matching shifts (default behaviour)
- Time Range Dollar Value — fixed dollar penalty for a time window
- Same configuration with Penalty Currency Rate instead of percentage
Public Holiday Penalties
Apply specifically to work performed on public holidays.
- Public Holiday Rate Multiplier — percentage-based penalty
- Penalty Rate — enter the percentage
- Public Holiday Dollar Value — fixed dollar penalty
- Hourly Penalty Dollar Value — enter the dollar amount
- Public Holiday Time Range Rate Multiplier — percentage for a specific time window on public holidays
- Penalty Rate + Applicable Time Range
- Shift Ranges (optional) — restrict this penalty to shifts that start and/or end within specific windows:
- Start Shift Range — only apply the penalty when the shift starts within this time window
- End Shift Range — only apply the penalty when the shift ends within this time window
- Leave both blank to apply the penalty to all matching shifts (default behaviour)
- Public Holiday Time Range Dollar Value — fixed dollar for a specific time window
- Penalty Currency Rate + Applicable Time Range
Setting Up a Penalty Rule
- Click Add Rule under the desired penalty type.
- Configure the required fields (days, rate/amount, time ranges).
- Enter the Clause number (from your award document).
- Add a Rule Title for easy identification.
- Use the Enabled toggle to activate the rule.
Managing Penalties
- Enable/disable all penalties — use the toggle on the Penalties accordion header.
- Remove a rule — click the remove icon in the clause section.
- Multiple rules — you can add multiple penalties of the same or different types.
Tips
- Rate multipliers (e.g., 150% = time and a half) are the most common penalty format in Australian awards.
- Dollar value penalties are used when your award specifies a flat additional amount per hour.
- Shift-based penalties are useful for late-night or early-morning shifts that span specific windows.
- Use the Shift Start Day variant when your award says the penalty for a shift should be determined entirely by when it starts — common for permanent night-shift allowances.
- Use the Shift Start Day Checkin Time variant when the penalty should additionally depend on when the employee actually clocked in or out — for example, a permanent night-shift penalty that only triggers when the employee checks in after 18:00.
- Time range penalties target specific clock hours regardless of when the shift started.
- Use Shift Ranges on time range penalties to limit the penalty to specific shift patterns — for example, only applying an evening penalty to shifts that start after 14:00.
- Stack penalties carefully — confirm with your award document whether penalties are cumulative or exclusive.
Related Topics
- How to Configure Daily Overtime Rules — overtime rules that work alongside penalties
- How to Configure Meal Break Rules — penalties related to meal breaks
- How to Use the Test Bench — validate your penalty configurations